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Tuesday, July 21, 2009

Update Transaction - AT&T (T) (7-15-2009)

As I have been on vacation for the last week, there will be a barrage of new posts today and tomorrow to update the blog to the most recent activity.

I have decided to start to bite the bullet on some of my positions in the slow-moving high-dividend payers in my portfolio and sell calls which are not that far out of the money, and have relatively low option premiums. I figure I may as well try to make some money off of them while they lag the market, even if it means the position gets called away a little lower than I want it to. I plan to keep the other 100 shares of AT&T uncovered in hope that the stock rises some more, and I can sell a $26 call.

Transaction History:
2/21/2009 -- Additional Stock Purchased -- Bought T @ 23
2/27/2009 -- Sold To Open 1 T April $20 Call @ 3.95
3/10/2009 -- Bought To Close 1 T April $20 Call @ 2.93
3/10/2009 -- Sold to Open 1 T April $25 Call @ .34
3/13/2009 -- Bought To Close 1 T April $25 Call @ .84
3/13/2009 -- Sold To Open 1 T April $26 Call @ .39
4/7/2009 -- AT&T Dividend @ .41
4/17/2009 -- Covered Call Expire
4/20/2009 -- Sold To Open 1 T May $27 @ .43
5/15/2009 -- Covered Call Expire
5/20/2009 -- Sold To Open 1 T Oct $27 @ .65
6/1/2009 -- Bought To Close 1 T Oct $27 @ 0.79
6/1/2009 -- Sold To Open 1 T June $25 @ 0.4
6/19/2009 -- Call Expired
7/8/2009 -- Dividend @ 0.41
7/15/2009 -- Sold To Open 1 T August $25 @ 0.3


The important purchase metrics are below for insight into possible profit and loss (these all include commissions):
Stock Purchase Cost: $2300.00


Downside Coverage (based on current share price): 17%
Possible Max Upside: 24.51%

Annualized Max Upside: 49.16%

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